In July of 2012, sixteen months ago, I wrote a post outlining my plan to pay off my mortgage in five years, before the ARM rate resets.
On that schedule, the balances needed to look like this:
Well, the balance today is around $198,200, about $11,000 ahead of where the balance needs to be at the end of this year to stay on the original five year pay-off plan. The balance at the end of 2012 was around $259,600, which was about $4,000 ahead of that year’s required balance.
I am now amending my mortgage pay-off plan to pay it off by the end of 2015, slightly over two years from now and 3.5 years into the mortgage. The modified balance schedule is as follows:
I think that this is slightly aggressive, but it is quite possible. My current income projections put the balance at just under $180,000 at the end of this year, at around $100,000 at the end of 2014, and around $20,000 to $30,000 at the end of 2015, which means I need to come up with up to an extra $10,000 on top of my $20,000 savings account to pay the mortgage off by the end of 2015. I will re-evaluate the plan again in June/July of 2014 and then at the end of 2014.
What will I do after the mortgage is paid off? What about my idea to go to grad school? Well, in the fall of 2015, I will evaluate whether I want to go to grad school or keep working and if I want to go to grad school, then all of my savings from after the mortgage is paid off will go to online savings accounts to cover that. If I decide to not go to grad school, then I will build up a $20,000 general savings account again, then set aside 1/5th of the money to buy a new car in 2020 and stash money in taxable investment accounts since I’m already maxing out my available tax-advantaged retirement accounts.